Comerica Bank’s California Index Declines in February

Comerica Bank’s California Economic Activity Index declined in February, down 1.1 percentage points to a level of 109.0. February’s reading is 36 points, or 50 percent, above the index cyclical low of 72.7. The index averaged 106 points for all of 2013, five points above the average for all of 2012. January’s index reading was unchanged at 110.1.

“Our California Economic Activity Index declined in February, reflecting the hangover from softer economic conditions this winter. Most components of the index were positive for February, indicating that the overall series will turn north again soon. Drought conditions are hurting the agricultural sector, and the state’s important defense industry is feeling the drag from federal spending cuts. However, most other sectors of the California economy are on a moderate improvement track supported by a strong high-tech sector and climbing house prices,” said Robert Dye, Chief Economist at Comerica Bank. “We continue to expect the California economy to improve through 2014.”